Woodside profit, dividend beat estimates, firm flags interest in Driftwood stake

By Himanshi Akhand and Lewis Jackson

(Reuters) -Australia's Woodside Energy reported on Tuesday a decline of 14% in half-year profit, hit by lower oil prices, but the result and its dividend beat market expectations, sending shares up 4%.

Chief Executive Meg O'Neill said there had been a flood of interest in the proposed sale of equity in Driftwood, a U.S. liquefied natural gas export project Woodside is set to own when it buys U.S. developer Tellurian for $1.2 billion, including debt.

"We're looking at companies who can support with upstream gas supply," she said, as well as those with an interest in offtake and even just the plant's infrastructure elements.

Woodside aims to have firm commitments on equity sales, if not signed deals, before it makes a final investment decision in the first quarter of 2025, O'Neill added.

Woodside also said it would take offline one of its five LNG trains at the Karratha Gas Plant between late 2024 and mid-2025 as the ageing field's production declines.

It posted underlying net profit after tax of $1.63 billion for the six-month period ended June 30, handily beating a Visible Alpha consensus estimate of $1.38 billion.

Shares in the company surged to close up 3.9%.

The profit slump was mainly due to lower oil prices and Woodside's average realised price fell to $63 per barrel of oil equivalent from $74 in the corresponding period last year.

Woodside also declared an interim dividend of 69 U.S. cents a share, down from 80 U.S. cents a year earlier, representing 80% of underlying net profit after tax.

The company had flagged a payout range of 50% to 80% and the market had expected a payout of 55 cents.

(Reporting by Himanshi Akhand and Roshan Thomas in Bengaluru and Lewis Jackson in Sydney; Editing by Edwina Gibbs and Clarence Fernandez)